Question 1

Which one of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault?

Accepted Answer

A)  Property damage liability
B)  Collision
C)  Comprehensive physical damage
D)  No-fault insurance
E)  Assigned risk pool coverageF) B) and D)
G) B) and C)

Question 2

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Accepted Answer

A)  Assigned risk pool
B)  Financial responsibility coverage
C)  Comprehensive system
D)  No-fault insurance
E)  Uninsured motorists protectionF) None of the above
G) All of the above

Question 3

List and describe the four steps in developing a personal insurance program.

Accepted Answer

Answers will vary.
STEP 1: SET INSURANCE...

Question 4

Thomas Joslin was judged at fault in an automobile accident.Three others were awarded damages of $125,000,$100,000,and $75,000.Thomas has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Accepted Answer

A)  $125,000
B)  $100,000
C)  $25,000
D)  $10,000
E)  None.The total amount would be covered by insurance.F) B) and E)
G) C) and D)

Question 5

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

Accepted Answer

A)  House and other structures
B)  Additional living expenses
C)  Personal property
D)  Personal liability
E)  Specialized coverageF) C) and D)
G) A) and D)

Question 6

Defective house wiring is an example of a:

Accepted Answer

A)  hazard.
B)  peril.
C)  risk.
D)  speculation.
E)  planned danger.F) D) and E)
G) A) and D)

Question 7

Larry Foster has bought a car with extra safety features,including front and side airbags and antilock brakes.How is Larry managing his risk?

Accepted Answer

A)  Avoidance
B)  Reduction
C)  Assumption
D)  Shifting
E)  DevelopmentF) C) and D)
G) B) and D)

Question 8

The driver classification category is based on automobile style,model,and value of the vehicle.

Accepted Answer

A) True 
 B)False

Question 9

Ginger Simpson ran off the road and hit a bridge support.She was seriously injured and spent three days in the hospital.What part of Ginger's automobile insurance policy would cover Ginger's injuries?

Accepted Answer

A)  Bodily injury liability
B)  Medical payments coverage
C)  Property damage liability
D)  Collision
E)  Comprehensive physical damageF) D) and E)
G) A) and E)

Question 10

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Accepted Answer

A) True 
 B)False

Question 11

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Accepted Answer

A)  Financial responsibility laws
B)  Lemon laws
C)  Truth in Lending Law
D)  Equal Opportunity Law
E)  Fiscal responsibility lawsF) B) and D)
G) A) and B)

Question 12

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Accepted Answer

A)  peril.
B)  hazard.
C)  risk.
D)  premium.
E)  liability.F) A) and B)
G) D) and E)

Question 13

Which of the following is a risk-sharing firm that agrees to assume financial responsibility for losses that may result from an insured risk?

Accepted Answer

A)  Financial advisor
B)  Auto manufacturer
C)  Homeowner
D)  Policyholder
E)  Insurance companyF) A) and D)
G) None of the above

Question 14

Personal risks,property risks,and liability risks are types of ________ risk.

Accepted Answer

A)  speculative
B)  avoided
C)  assumed
D)  pure
E)  reducedF) C) and E)
G) A) and E)

Question 15

Possible losses due to negligence resulting in bodily injury or property damage to others are called ________ risks.

Accepted Answer

A)  speculative
B)  liability
C)  property
D)  personal
E)  commercialF) None of the above
G) A) and D)

Question 16

No-fault insurance systems always reduce the time and costs involved in settling auto injury claims.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of financial responsibility laws is to:

Accepted Answer

A)  reduce auto insurance costs.
B)  assist poor drivers in getting insurance coverage.
C)  protect the public from physical harm and property damage losses caused by drivers.
D)  require uninsured motorists coverage.
E)  help drivers with a clean driving record.F) A) and C)
G) D) and E)

Question 18

A friend wants to understand what affects the cost of auto insurance.Explain the main factors used to determine the automobile insurance premiums a person pays.

Accepted Answer

The main factors that influence the amou...

Question 19

Kyle Burroughs left his car parked on the street all night.When he came out in the morning all four of his tires had been slashed by vandals.What part of Kyle's automobile insurance would cover this damage?

Accepted Answer

A)  Bodily injury liability
B)  Medical payments coverage
C)  Property damage liability
D)  Collision
E)  Comprehensive physical damageF) C) and D)
G) B) and C)

Question 20

Which of the following is an insurable risk?

Accepted Answer

A)  Purposeful injury to another
B)  Quitting your job because you dislike it
C)  Professional misconduct
D)  Starting a small business
E)  GamblingF) A) and C)
G) B) and C)

Exam 10: Property and Motor Vehicle Insurance

The purpose of financial responsibility laws is to:

Correct AnswerverifiedShow Answer

A friend wants to understand what affects the cost of auto insurance.Explain the main factors used to determine the automobile insurance premiums a person pays.

Correct AnswerverifiedThe main factors that influence the amou...View AnswerShow Answer

David Bowers must show a card from his automobile insurance company when he registers his car in the state of Oklahoma each year to show financial responsibility.Which of the following types of laws is the reason he must show this card each year?

Correct AnswerverifiedShow Answer

Defective house wiring is an example of a:

Correct AnswerverifiedShow Answer

Thomas Joslin was judged at fault in an automobile accident.Three others were awarded damages of $125,000,$100,000,and $75,000.Thomas has 100/300 bodily injury liability coverage.What amount,if any,would not be covered by his insurance?

Correct AnswerverifiedShow Answer

The driver classification category is based on automobile style,model,and value of the vehicle.

Correct AnswerverifiedShow Answer

Personal risks,property risks,and liability risks are types of ________ risk.

Correct AnswerverifiedShow Answer

The purpose of an assigned risk pool is to assist people with poor driving records in obtaining automobile insurance coverage.

Correct AnswerverifiedShow Answer

Possible losses due to negligence resulting in bodily injury or property damage to others are called ________ risks.

Correct AnswerverifiedShow Answer

No-fault insurance systems always reduce the time and costs involved in settling auto injury claims.

Correct AnswerverifiedShow Answer

Ginger Simpson ran off the road and hit a bridge support.She was seriously injured and spent three days in the hospital.What part of Ginger's automobile insurance policy would cover Ginger's injuries?

Correct AnswerverifiedShow Answer

Albert Finney owns a home in Pompano Beach,Florida.His house is broken into and the burglar steals his computer,his big screen TV,his stereo equipment,and his toaster.What part of his homeowner's insurance would cover this loss?

Correct AnswerverifiedShow Answer

Kyle Burroughs left his car parked on the street all night.When he came out in the morning all four of his tires had been slashed by vandals.What part of Kyle's automobile insurance would cover this damage?

Correct AnswerverifiedShow Answer

List and describe the four steps in developing a personal insurance program.

Correct AnswerverifiedAnswers will vary.STEP 1: SET INSURANCE...View AnswerShow Answer

Tara Guest owns a home in Edmond,Oklahoma.She is worried about a tornado causing damage to her home.The tornado is an example of a:

Correct AnswerverifiedShow Answer

Which of the following is an insurable risk?

Correct AnswerverifiedShow Answer

Which one of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault?

Correct AnswerverifiedShow Answer

Which of the following is a system in which drivers involved in an accident collect medical expenses,lost wages,and related injury costs from their own insurance company?

Correct AnswerverifiedShow Answer

Larry Foster has bought a car with extra safety features,including front and side airbags and antilock brakes.How is Larry managing his risk?

Correct AnswerverifiedShow Answer

Which of the following is a risk-sharing firm that agrees to assume financial responsibility for losses that may result from an insured risk?

Correct AnswerverifiedShow Answer

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The main factors that influence the amou...
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Answers will vary.
STEP 1: SET INSURANCE...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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